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This lecture covers the physics of hydropower, including key equations for energy balance and the Buckingham i theorem. It explores different types of hydraulic turbines such as Pelton, Francis, and Kaplan, as well as new developments in microturbines. The integration of hydropower in the energy system is discussed, highlighting its competitive cost and low greenhouse gas emissions. The lecture also delves into the impacts of hydropower on the environment and society, emphasizing the importance of public acceptance. Future potential in the energy system is analyzed, focusing on the role of new hydro dams and rivers, as well as pumped hydro for seasonal energy storage.